HOUSE BILL ANALYSIS

               HB 1354     

Title: Regulating fees charged by broker-dealers.

Brief Description: Declares it unlawful for a broker dealer or associated salesperson to charge a periodic fee to a customer if no transactions in securities were effected for that customer in the period for which the fee was charged.

  Sponsors:Carlson, Benson, Hatfield, D. Schmidt, Bush.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Meeting Date: Thursday, February 4, 1999

Bill Analysis Prepared by: Anntonette Alberti (7117)

Background: Securities broker-dealers and their associated salespersons are registered by the Department of Financial Institutions.

A broker-dealer is a person who effects transactions in securities. 

A salesperson associated with a broker dealer is a person who represents a broker dealer or issuer of securities in effecting sales of securities.

If a broker-dealer or salesperson violates or willfully fails to comply with the Securities Act of Washington, the Director of the Department of Financial Institutions may deny, suspend, or revoke the broker-dealer=s or salesperson=s registration. Additionally, the Director may censure, fine, or restrict a broker-dealer or salesperson violates or willfully fails to comply with the Securities Act of Washington.

Summary of Bill: A broker-dealer or associated salesperson may lawfully charge a customer a periodic fee only if transactions in securities have been effected for the customer in the period for which the fee is being charged.

Appropriation: None.

Fiscal Note: None requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Rulemaking Authority: None granted.